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Indonesia central bank sees Dec inflation increasing 0.4-0.6% m-o-m

[JAKARTA] Indonesia's central bank expects month-on-month inflation in December to be between 0.4-0.6 per cent, BI Governor Agus Martowardojo told reporters on Friday.

Bank Indonesia's inflation target for this year and next year is between 3 and 5 per cent.

November was the first month in 2015 in which the country's annual inflation rate was below 5 per cent, at 4.89 per cent.

The governor said "We must continue to watch external conditions. There is a potential risk of capital reversal in developing countries." The comment appears linked to the Dec 15-16 meeting of the Federal Reserve, at which USinterest rates may be raised for the first time in nearly a decade.

Bank Indonesia's last policy meeting of the year is on Dec 17.